Hawaiʻi Residential Real Estate Market Update
Single-Family Home Activity by Island: January — May 2026
CDRE Hawaiʻi Newsletter | July 2026
Hawaiʻi’s single-family home market delivered a story of sharp contrasts during the first five months of 2026. O‘ahu remained competitive and supply-constrained, with homes selling faster than at any comparable period in recent years. Maui continued its extended correction, with long days on market and prices settling well below prior-year levels. Hawai’i Island led the state in sales volume growth, driven by value-seeking buyers in East Hawai’i sub-markets. Kaua‘i moved at its characteristically modest pace, with thin monthly transaction counts and results that continue to be influenced by individual luxury sales.
Statewide, single-family home sales rose 17% year-over-year in May 2026, with the median price up 2% to $995,000. By contrast, the condominium market — not covered in this report — faced continued headwinds from rising insurance premiums, higher HOA fees, and regulatory uncertainty. Mortgage rates hovered near 6.36% as of mid-May (Freddie Mac), keeping affordability a central concern across all islands. What follows is an island-by-island summary of single-family home activity for January through May 2026.
I. O‘ahu
O‘ahu remained the most competitive single-family home market in the state. The year opened with 194 sales in January — essentially flat year-over-year — and activity accelerated through the spring. By May, homes were selling at a median of just 13 days on market, a 32% improvement over May 2025. Inventory remained about 10% below 2025 levels throughout the period, and with only 2.9 months of remaining supply, the island stayed firmly in seller’s market territory for single-family homes.
A. Monthly Statistics
• January: 194 sales | Median $1,122,500 | 27 days on market | ~101% SP/LP
• February: ~215 sales | Median $1,128,000 | 22 days on market | ~102% SP/LP
• March: ~230 sales | Median $1,150,000 | 19 days on market | ~102% SP/LP
• April: ~240 sales | Median $1,162,000 | 24 days on market | ~101% SP/LP
• May: ~252 sales | Median $1,166,000 | 13 days on market | ~103% SP/LP
B. Key Trends
Buyer competition was notably strong throughout the period. In January, 33% of single-family sales closed above the original asking price — a four-year high for that month. By May, that figure climbed to 35%, with pending sales up 8.8% year-over-year. Prices remained stable, with the May median of $1,166,000 essentially flat compared to a year earlier. The market showed no meaningful correction in the single-family segment; the story was one of constrained inventory and durable demand.
Within O‘ahu, price ranges varied considerably. Neighborhood-level medians ran from approximately $675,000 in Leeward communities to over $2,575,000 in Waialae-Kahala. Year-to-date, the islandwide single-family home price was up approximately 3%. New listings increased 3.3% year-over-year in May, a modest improvement in supply that has not yet meaningfully altered the competitive dynamic for well-priced homes.
O‘ahu takeaway: Single-family homes continued to move quickly and competitively through May 2026. With 35% of sales closing above asking price and a median of just 13 days on market in May, well-priced homes in this market are still receiving multiple offers. Buyers should be prepared and pre-approved; sellers retain meaningful leverage on correctly priced, move-in-ready properties.
II. Maui
Maui’s single-family market has been in a broader correction for nearly two years, and the January–May 2026 period continued that trend. Rising inventory, extended marketing times, and declining median prices characterized every month of the reporting period. The combination of Maui County’s Bill 9 short-term rental restrictions, higher mortgage rates, and geopolitical uncertainty weighed on buyer sentiment — particularly in the condominium segment, but with spillover effects into the single-family market as well.
A. Monthly Statistics
• January: 52 sales | Median $1,400,000 | 186 days on market | ~95% SP/LP
• February: ~55 sales | Median ~$1,350,000 | ~160 days on market | ~95% SP/LP
• March: 77 sales | Median $1,200,000 | 131 days on market | ~94% SP/LP
• April: 49 sales | Median $1,290,000 | 138 days on market | ~94% SP/LP
• May: 58 sales | Median $1,174,500 | 132 days on market | ~94% SP/LP
B. Key Trends
The most striking feature of Maui’s single-family data is the days on market figure: properties sat for 131 to 186 days throughout the period — roughly four to six months — before going under contract. This is not simply a slow spring; it reflects a structural imbalance between seller pricing expectations and buyer willingness to commit at current rates and valuations. The total dollar volume for single-family sales in May was $85.9 million, essentially unchanged year-over-year despite the 3.6% increase in units sold, because the median price fell 9%.
March’s 57% year-over-year jump in unit sales was a bright spot, driven by increased activity in attainable price ranges. However, neither that surge nor the modest uptick in May transactions signals a fundamental shift in conditions. Sellers who priced competitively and structured terms to meet buyers where they are continued to move their properties; those holding out for prior-cycle valuations remained on the market.
Maui takeaway: With homes averaging over four months on market and sale prices running approximately 5–6% below original list prices, Maui is clearly in buyer’s market territory for single-family homes. Buyers have meaningful negotiating leverage, particularly on properties that have been listed for extended periods. Sellers need realistic pricing strategies and patience.
III. Hawai‘i Island (Big Island)
Hawai‘i Island stood apart from the other islands in one key respect: transaction volume grew steadily and substantially throughout the period. April’s 22% year-over-year increase in single-family sales was the strongest growth rate of any island for that month, driven by value-oriented buyers — many relocating from the mainland or from higher-cost islands — who found the Big Island’s relative affordability compelling. The island continues to offer entry points unavailable elsewhere in the state.
A. Monthly Statistics
• January: ~145 sales | Median ~$550,000 | ~35 days on market | ~98% SP/LP
• February: ~150 sales | Median ~$560,000 | ~34 days on market | ~98% SP/LP
• March: ~165 sales | Median ~$580,000 | ~33 days on market | ~97% SP/LP
• April: 187 sales | Median $590,000 | 33 days on market | ~97% SP/LP
• May: 180 sales | Median $468,000 | 29 days on market | ~97% SP/LP
B. Key Trends
The apparent drop in the May median price from $590,000 to $468,000 warrants context. It does not reflect a sudden deterioration in market conditions; rather, it reflects a mix-shift toward more affordable East Hawai‘i sub-markets. Pāhoa led island-wide activity in May with 42 sales at a $375,000 median — a 62% year-over-year increase in units and a 30% increase in price. Hilo and Volcano also contributed significant volume at medians well below the island average. When lower-priced sub-markets drive a disproportionate share of volume, the island-wide median moves accordingly, even when individual neighborhood values hold steady or improve.
Days on market improved to 29 in May — the fastest pace of any month in the reporting period and among the best of any island. Buyers considering Hawai‘i Island should remain attentive to lava zone classification, insurance availability, and infrastructure access, which can vary significantly by location and materially affect both carrying costs and long-term resale liquidity.
Hawai‘i Island takeaway: Volume growth is the defining characteristic of this market in 2026. For buyers priced out of O‘ahu and Maui, the Big Island continues to offer the most accessible entry points in the state. The low days-on-market figure in May suggests that competitively priced properties are moving efficiently. Sub-market selection — East vs. West Hawai‘i, and lava zone considerations — matters as much as island-level price trends.
IV. Kaua‘i
Kaua‘i’s single-family market operated at its characteristic low volume throughout the January–May period, with monthly closed sales typically ranging from 28 to 48 homes island-wide. At this scale, a single high-value transaction can shift the monthly median price substantially in either direction — a statistical reality that makes month-to-month comparisons less reliable on Kaua‘i than on higher-volume islands. The North Shore, South Shore (Koloa/Po‘ipū), and East Side (Līhu‘e) continued to attract distinct buyer profiles and produced differing price trends.
A. Monthly Statistics
• January: ~28 sales | Median ~$1,000,000 | ~55 days on market | ~96% SP/LP
• February: ~37 sales | Median $1,388,000 | 67 days on market | ~96% SP/LP
• March: ~30 sales | Median ~$1,050,000 | ~60 days on market | ~96% SP/LP
• April: ~48 sales | Median $937,000 | 95 days on market | ~95% SP/LP
• May: ~35 sales | Median ~$1,100,000 | ~70 days on market | ~96% SP/LP
B. Key Trends
February’s elevated median of $1,388,000 illustrates the outsized influence of individual transactions on Kaua‘i. North Shore activity in the first quarter included the sale of a rare 22-acre beachfront estate in Pilā‘a that closed for $16 million — a single transaction that pushed the Q1 total dollar volume up over 66% despite only a modest increase in unit counts. When reading Kaua‘i median price data, the composition of closed sales in any given month matters more than the headline number.
April’s three-month trailing median of $937,000 — down 6.3% year-over-year — and 95 average days on market reflected a broader softening from 141 days a year prior, a meaningful improvement in pace even as prices pulled back. Home sales were up 10% year-over-year in April, and the average home value island-wide remained approximately $1,004,967, essentially flat over the prior year. Kaua‘i’s market is best characterized as selective: demand for well-located, move-in-ready homes remains real, while overpriced listings or properties with deferred maintenance sit.
Kaua‘i takeaway: Low transaction volume makes monthly statistics volatile and difficult to interpret in isolation. Buyers and sellers should focus on trailing three-month or twelve-month trends rather than individual monthly medians. North Shore luxury demand and South Shore resort-area activity continue to define the upper end of the market, while East Side properties offer relatively more accessible price points.
V. Statewide Themes for 2026
Several themes cut across all four markets and are worth tracking through the remainder of 2026:
• Single-family homes continue to outperform condominiums statewide. Rising insurance premiums, higher HOA fees, and condo-specific regulatory uncertainty — particularly on Maui — have created a pronounced two-tier market. Single-family inventory remains tight on O‘ahu; condo inventory is elevated on most islands.
• Mortgage rates remain a persistent headwind. At approximately 6.36% for a 30-year fixed rate as of mid-May (Freddie Mac), borrowing costs continue to constrain buyer purchasing power. Buyers who locked in rates below 4% in 2020–2022 are largely staying put, which suppresses resale inventory and sustains price floors — particularly on O‘ahu.
• Hawaiʻi cannot sprawl. Geographic constraints that limit new supply continue to provide a structural floor under prices in quality locations, even when demand softens. This is especially evident on O‘ahu, where single-family inventory declined 10.8% year-over-year in May despite improving sales activity.
• Island-level data can mislead. Statewide statistics are too blunt an instrument for any real transaction decision. A 9% median price decline on Maui and a flat median on O‘ahu reflect entirely different market dynamics. Sub-market expertise — not just island-level awareness — is the operative advantage in this environment.
Conclusion
The first five months of 2026 confirmed that Hawaiʻi’s residential real estate market is not a single market — it is four distinct island markets, each responding to the same macroeconomic pressures in meaningfully different ways. O‘ahu’s single-family segment remains competitive and supply-constrained. Maui is working through an extended correction that offers real opportunity for prepared buyers. Hawai‘i Island is growing in volume and accessibility. Kaua‘i is moving selectively at its characteristically measured pace.
The buyers who are succeeding in this environment are not waiting for a statewide crash that may never arrive in the form they expect. They are asking better questions: What is the sub-market doing? What is the real monthly carrying cost? Why has this property sat? What happens to resale in five years? Those questions — combined with current, island-specific market data — are the foundation of sound real estate decisions in Hawaiʻi in 2026.
About the Author: Judy Howard is a practicing family law attorney, a broker associate with Compass, and a Certified Divorce Real Estate Expert. She is happy to speak with attorneys about real estate issues in their cases, and to accept divorce listings, which she manages by associating with a Compass agent familiar with the particular market. See more here.
Sources: Honolulu Board of REALTORS® (HBR), REALTORS® Association of Maui (RAM), Locations Hawaiʻi, Hawaiʻi Life, List Sotheby’s International Realty, Redfin, Coldwell Banker Island Properties, Hawaiʻi Luxury Resort Properties, and Maui Now. Figures marked ~ are estimates based on available monthly, quarterly, and narrative reporting where precise monthly data was not published. This report covers resales of existing single-family homes only; new construction and condominium data are excluded. All data is deemed reliable but not guaranteed. This newsletter is provided for general informational purposes only and does not constitute legal, financial, or investment advice.
